S&P rates Styron loan B+

Standard & Poor's said it assigned Styron Sarl's proposed senior secured $1.3 billion term loan due 2017 a B+ rating and 4 recovery rating and revised the recovery rating on the company's existing $240 million revolving credit facility to 4 from 3. The 4 recovery ratings indicate the expectation for average recovery (30%-50%) in the event of a payment default.

The outlook is stable.

S&P said it also affirmed the B+ corporate credit rating.

Proceeds from the proposed term loan are expected to be utilized to pay down existing debt including the $800 million term loan, and to fund a dividend payment of approximately $400 million.

The ratings reflect Styron's aggressive financial profile and weak business profile as a leading, but commodity-oriented, producer of petrochemical products, S&P said.

The ratings also consider the potential for some additional debt should Styron's private equity ownership decide to implement growth initiatives or further shareholder rewards, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.